NOTE: Sections blacked out are noted by X's, with number of lines where applicable.

CONFIDENTIAL
SECRET
ALL INFORMATION CONTAINED
HEREIN IS UNCLASSIFIED

DATE 3-31-86 BY 9145-C1-JC
262.646
Classified by: 9145-C1-JC
Declassify on: OADR 4-02-86
262.646
ALL INFORMATION CONTAINED
HEREIN IS UNCLASSIFIED
EXCEPT WHERE SHOWN
OTHERWISE

FEDERAL BUREAU OF INVESTIGATION

Form No. 1
This case originated at: SAN FRANCISCO, CALIFORNIA --- File No. 97-9
Report made at:
San Francisco, California
Date:
2/10/40
Period:
1/23/40
Report made by:
XXXXX
Title:
ZAIBEI NIHONJIN HEIYAKU GIMUSHA KAI, also known as HEIMUSHA KAI, and ZAIBEI HEIMUSHA KAI (Association of Japanese in America obligated to Military Duty; also known as Japanese People Residing in America Military Affairs Association).
Character of case:
REGISTRATION ACT - AGENTS OF FOREIGN PRINCIPALS.
SYNOPSIS OF FACTS: XXXXX as representative of subject Association, San Francisco, California, was shipped approximately 10,000 certificates of thanks issued by the IMPERIAL JAPANESE NAVY, for contributions of money for the relief of officers and men of the Japanese Navy. These certificates forwarded by the Japanese Foreign Office through the Japanese Consul General, arrived San Francisco December 20, 1939, and formally demanded by Japanese Consul 1/22/40. Certificates being held by Customs, San Francisco pending settlement of duty. Subjects not registered as agents of foreign principals. XXXXX not connected with Consular or diplomatic services.
Approved and forwarded: SAC
Do not write in these spaces
(signed) ??
17-1160-2
Copies of this report:
5 Bureau (Enc.)
1 Los Angeles (Info.)
2 Salt Lake City
2 Denver
2 Butte
1 Honolulu
1 Asst. Chief of Staff, G-2, Presidio, S. F.
2 Naval Intelligence, S. F.
4 San Francisco, California
FEB 16 A.M.
RECORDED
XXXXX
XXXXX

REFERENCE: XXXXX

DETAILS:

This case was originally called to the attention of the San Francisco Office by XXXXX who stated that the Collector of Customs, San Francisco was holding a large quantity of certificates which had been sent to this country by the Japanese Government for distribution to donors of funds for the Japanese Navy.

XXXXX, Customs Agent, examined, with the writer, ten bundles of certificates, each containing approximately 1,000. Photostatic copies of a sample of the certificates, which were all identical, with the exception of the name of the donor, have been prepared and have been placed in the San Francisco file of this case, together with a specimen translation which has been prepared by XXXXX.

Five photostatic copies of a specimen of the certificate are being forwarded to the Bureau with their copies of this report. The certificates translated read as follows: (after the name of the individual for whom intended:
"CERTIFICATE OF THANKS"

"Your contribution of sympathy money for the relief of officers and men of the Navy in the present emergency is gratefully received. Deep gratitude is hereby expressed in this aid to their endurance.

"14th Year of Showa, August.

"(Signed) MITSUMASA YONAI,
Minister of Marine."
Each certificate bore the seal of the Japanese Navy Minister in a square at the lower left hand corner.

The writer and XXXXX examined the tops of the two containers in which these items were received. They were addressed in English to "Consulate of Japan, San Francisco". Above this address in Japanese was written "XXXXX." On the top of each box was burned the seal of "H. I. J. E.'s Foreign Office, Tokio." The ten bundles, as viewed by XXXXX and the writer, contained groups of certificates, for which designations had been indicated on strips of paper inserted in the bundles.
Bundle # 1, Alameda, Alvarado, Berkeley, Bellmont, Chico, Colusa, Chualar, Contra Costa. All of these communities are in California.

Bundle # 2: Cortez, Cortland, Eden, Florin, Isleton, Marysville. All of these communities are in California.

Bundle # 3: Mountain View and Oakland, both in California.

Bundle # 4: Placer, Richmond, Reedley, Sonoma, Salinas, all in California.

Bundle # 5: Tulare, Salinas, Winters, all California.

Bundle # 6: Gilroy, Lodi, Marin, and Orosi; Monterey, Palo Alto, Redwood.

Bundle # 7: San Francisco Association, Santa Cruz, Davis, San Bonito, all California, and Inter-Mountain District. XXXXX explained that the "Inter-Mountain District" to the Japanese was the broad area surrounding Ogden, Utah.

Bundle # 8: Davis, approximately 250 unlisted, Collins (possibly Fort Collins, Wyoming), Nevada, Idaho Falls, Idaho, Kemmerer, Wyoming, Pocatello, Idaho, Suisun, California.

Bundle # 9: Salt Lake City, Utah, Garfield, Utah, Standardville, Utah, Neighborhood of Provo, Utah, Bingham Canyon, Utah, Watsonville, Vacaville, Ukiah and Woodland, in California. There was also in this bundle a group designated for Rudda, which would not be identified with any known town or community in this area.

Bundle # 10: This bundle had "number 10" crossed out, and the Japanese characters "Special Ones" substituted. One group was designated "San Francisco for Distribution". The other group was designated "For Various People in Different Places". One certificate in this bundle was separated from the others and attached to it on the letter-head of the DOMEI TSUSHIN SHA of Tokyo was written in English XXXXX, care of XXXXX Laundry, Reno, Nevada. With regard to XXXXX it should be noted that an espionage investigation was commended regarding this individual Salt Lake City origin, because of an item appearing in the Japanese press to the effect that XXXXX was donating a portion of his salary to the Japanese Navy, and had received a certificate from the Ministry of Marine.
THE NEW WORLD SUN Directory for 1940 shows the XXXXX LAUNDRY to be located at XXXXX, Reno, Nevada, telephone XXXXX and its proprietors, apparently, are XXXXX.

During the inspection of Bundle # 2 there was found a separate envelope on Japanese Navy Department paper containing a letter, photostatic copies of which have been placed in the San Francisco file of this case, and five photostatic copies of which are being forwarded to the Bureau with copies of this report. The translation by XXXXX of this letter is as follows:
"Navy Dept. Finance Office
Contribution's Section
Nov. 25, 1939.

XXXXX Representative
ZAI BEI NIHONJIN HEIYAKU GIMUSHA KAI (*)

"Request for delivery of Certificate Thanks.

Since the sudden development of the present emergency contributions to the troops sympathy fund have been received in large amounts through the San Francisco Consulate General. Grateful thanks is due for that.

"A list of names of (members of) your Society having previously been received from XXXXX of the DOMEI NEWS SERVICE there are issued herewith certificate of thanks of the Minister of Marine. These are being forwarded through the Foreign Office. Kindly arrange delivery of them to the respective destinations."

(End)
(*) Association of Japanese in America Obligated to Military Duty.

There were also with this letter several mimeographed sheets which are routine forms issued by the Contribution Section of the Finance Office, Navy Department of Japan, merely stating that the addressee's contribution is acknowledged with thanks, and that an official certificate of receipt is being forwarded herewith.

The San Francisco Bureau Office received from the Office of the Supervisor of Customs Agent, San Francisco a copy of the following:
"CONSULATE GENERAL OF JAPAN
22 Battery Street
San Francisco, California

January 22nd, 1940

"Hon. PAUL R. LEAKE
Collector of Customs
Custom House
San Francisco, California

"Dear Sir:

"We are advised by the N. Y. K. Office here that 2 wooden cases, containing printed matter, arrived at this port on December 20, 1939, by S. S. "HEIYO MARU", and also 1 box containing books which arrived at this port on January 11, 1940, by S. S. TUYAMA MARU.

"Inasmuch as the contents of these cases are to be used exclusively for this Consulate General's office use, would you be good enough to release them to the bearer of this letter?

"Your courtesy in this matter is greatly appreciated.

"Very sincerely yours,

TOSHITO SATOW
Consul General of Japan

By (Signed) MINORU IINO
Minoru Iino
Executive-Secretary."
The box of books referred to therein was shown the writer in the Customs Store-house. It was noted that it was addressed to the Consulate of Japan, San Francisco, and likewise bore the identical seal of the Foreign Office appearing on the consignments of certificates. The books, 90 in number, were entitled "The Goal of Japan's Expansion", by TATSUO KAWAI, printed in 1938 and bearing the notation "Kanda; The KOKUSEIDO PRESS; Tokyo."

A brief inspection of one of those volumes, all of which were printed in English, showed the books to be definitely propaganda literature.

XXXXX stated that the Collector of Customs was holding both the books and the certificates pending a settlement of duty, inasmuch as the items did not come in the duty-free category.

XXXXX stated that two of the certificates examined by his office were addressed to XXXXX and XXX-3 lines-XXX. XXXXX characterized him as a well-to-do, successful business man, who was recently presented with a gift by the Japanese Consul at San Francisco for his achievement in the field of trade. This gift had been donated by leading canning companies in Japan.

XXXXX, according to XXX-2 lines-XXX. According to XXXXX the HEIMUSHA KAI is an organization mainly composed of those persons who are eligible for military conscription, but it is understood that any other Japanese may also have membership. The organization was started in California and other Pacific Coast states some time during the latter part of 1937, and has now expanded to such an extent that there are branches of it in practically every Japanese community along the entire West Coast. Its members have been contributing approximately $1.00 each monthly and have, in addition, been collecting tinfoil. They have also been responsible for the preparation of many thousands of so-called "comfort kits", large numbers of which are shipped to Japan on almost all of the out-bound NYK LINE vessels. These kits are restricted only as to size, and they contain chocolate bars, small knitted articles, cigarettes and other similar items.

XXX-2 lines-XXX. The headquarters of the ZAIBEI HEIMUSHA KAI, is also at 1783 Sutter, telephone Walnut 2157 and Walnut 3232.

The San Francisco Branch of the HEIMUSHA KAI is located at 1766 Buchanan Street, telephones West 1428 and Walnut 6493.

The Oakland Office of the HEIMUSHA KAI is at 718 Franklin Street, telephone Glencourt 9669.

In Sacramento, the HEIMUSHA KAI office is at 1309½ - 4th Street. The Marysville, California HEIMUSHA KAI headquarters are 111 B Street. The Reedley, California headquarters of HEIMUSHA KAI are at Route 2, Box 907.

The Salt Lake City Office of the Utah HEIMUSHA KAI is 124 West First South. Street, telephone Wasatch 8958. In Ogden, Utah, the headquarters of the Inter-Mountain HEIMUSHA KAI are 2475 Lincoln Avenue, telephone 3874. Garfield Utah has a HEIMUSHA KAI Branch office at 6313 South 6 W Street.

XXX-15 lines-XXX

The State Department has in the past requested the subject association to register, but it was advised in a letter, dated October 3, 1939 from the firm of ALBERT ELLIOT and GUY CALDEN, 22 Battery Street, San Francisco, that the HEIMUSHA KAI had discontinued dealing in bonds, and was not required to register.

It might be noted that XXXXX states that XXXXX handle the bulk of Japanese business in San Francisco. Upon receipt of the reference teletype, investigation was discontinued, and the case is being closed; pending further advice from the Bureau and the State Department.

ENCLOSURES: To Bureau: Five copies of certificate of thanks signed by the Minister of Marine, and bearing the seal of the Japanese Navy Department, together with transactions thereof.

Five copies of letter addressed to XXXXX from the Navy Department (Japanese) Finance Office, Contributions Section, dated November 25, 1939.

Index cards.

CLOSED

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